Multiple Offers on YOUR Property!

 What happens when you’ve found ‘the one’? No, not your future wife or husband, but the place that you could call home? This is the property that made those 37 weekends of endless trudging around the open home circuit worthwhile. No weekend BBQs for ages, no...

Welcome to 2017…aahhh…2022

Where are you now? Have you moved forward to 2022 or are you still back in 2017?Another new year, more goals, another birthday this year and for some dreams coming true, yet for others, dreams still on hold and consigned to the New Years resolution list……..again. So,...

You Heard It Here First

You Heard it here only a few months ago!     For the last few months our good friends (not), the banks, have been slowly pushing up the rates on fixed term loans and yes, you guessed it, all the other rates will probably follow in the very near future....

How Busy Has It Been?

Wow! Has this year been super busy or what? Who would have thought that we would see a market like this in our lifetime and especially riding the back of a global pandemic? As far as property searches go, some people are just “over it!”.Having said that, there are the...

Do You Buy Now or Drop Your Standards Later?

Choices are getting difficult.For the moment at least, choices are getting harder to make. If you’re trying to keep up with property prices by working harder and saving more, you’re currently fighting a losing battle. Right now, you’d be flat out keeping pace let...

If It Ain’t Broke, Don’t Fix It

This age old saying in the vernacular also works with mortgages. But why? Fixed interest rates on a home loan are often higher than variable rates, but it’s all dependant on the global bond market. Fixed rates are funded by the global bond markets, meaning the bank...

Why Haven’t Prices Plummeted?

We’ve got Covid, a recession and had lockdown all over the place, but property remains strong and seemingly getting stronger?We all remember the dire predictions in the press this time last year with most property pundits espousing everything up to a total collapse of...

How Many Property Booms Have You Missed So Far?

You can count them on this graph.Personally, I haven’t missed any since 1998. Can you guess why that is? The reason is because I bought my first property in 1998, so I’ve had my toe in the water ever since then. Sure, there have been a couple of slower periods in that...

How Fast is Your Dream Slipping……Ahh…..Powering Away From You?

Have you been keeping a close eye on the market lately? Haven’t we all! It’s hard to believe some of the crazy things going on at the moment. This makes it all the more important to take action so you don’t see your dreams like you see a jet fighter…………disappearing...

The Cheap Money Boom!

Are we really in a property boom period just now? Maybe, but is it really a property boom? What I believe we are seeing just now is the largest, most concentrated cheap money boom that I for one have ever seen in my entire life and I’ve lived a lot of my life, so... #main-header, #top-header, #main-footer { display: none!important; }

It seems it was easier back in the olden days.

Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could become investors. It seemed they were usually the ones born into money. Back then, there didn’t seem to be the same belief that just any ol’ body could become a property investor. It still takes a fair bit of work and education, however with various Government incentives, historically record low interest rates and more competition for the ‘Big Four’ in mortgage lending, there are more and more people getting into their own home as well as branching out into investment properties.

With all this property buying and selling going on and an increased number of people realising the value of investment property, a new animal has emerged and is becoming more well-known over recent times; the ‘rent-vestor’. A recently discovered beast which is procreating at a rate significant enough to rival that of the cane toad.

So, what is a rent-vestor?

This growing phenomena involves buying a property and renting it out straight away while the buyer continues to rent, or even still lives at home with Mun & dad. This is opposed to the better known and practiced method of buying your own home, paying it down and using the equity to buy an investment property. Naturally, there are pros and cons to each of these methods. Should you be considering investing in property and possibly becoming a rent-vestor, the best way to determine your suitability is to speak with your finance professional and look closely at your financial situation. Your finance professional is an important part of the property team that you should assemble.

There are considerations such as stamp duty, First Home Owner’s Grant (FHOG) and tax deductibility that need to be allowed for. If you live in your first property, you can count on stamp duty concessions and the FHOG. If you continue renting or stay home with Mum & Dad and buy an investment property first up, there may be tax deductions that can lower your taxable income via negative gearing strategies. You may have considerations such as maintenance and Property management to think of. Depending which way you go, there may also be lenders mortgage insurance (LMI) to consider. Regarding LMI, some people steer away from loans because of this expense and of course it is better to keep expenses as low as possible, however, I personally feel that if it gets you in the game, the long term benefits are worth it.

Rent-vesting is a good way to get into the market, being that someone is helping you pay off your property. The crux of the matter needs to be your own current financial situation, so be sure to involve your property team in the planning and implementation.

Here at PPBA, we’re an essential part of your property team. We can’t give you a loan, but we might shout you a coffee while we have a fee and obligation free chat about your property aspirations. Own home or investment, we can put you on the right track.

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